Global Ferronickel Holdings, Inc. (FNI), one of the Philippines’ leading nickel ore producers, tripled (up 200.4 percent) its attributable net income to ₱622.1 million in the first half of 2025 from ₱207.1 million in the prior year as a jump in prices and stable costs offset lower shipments.

In a disclosure to the Philippine Stock Exchange, the firm said its revenues from mining expanded by 6.9 percent year-over-year to ₱3.28 billion from ₱3.07 billion on the back of elevated realized prices, despite lower shipment volume for the period.

“Favorable nickel ore prices—backed by constrained ore supply—underpinned topline growth. Volume decline, on the other hand, was largely attributed to inclement weather and regulatory challenges,” FNI said.

Sales volume dropped by 23.2 percent to 1.62 million wet metric tons (WMT) from 2.11 million WMT in 2024. The sales mix moved to 62 percent low-grade and 38 percent medium-grade ore, from 41 percent and 59 percent, respectively, in the same period last year.

This is primarily due to extended rainfall days that hampered medium-grade ore production, leading to a strategic focus on low-grade shipments.

Average realized nickel ore price rose to $35.61 per WMT, 40.5 percent higher than $25.35 per WMT in the first half of 2024. Low-grade ore sold at an average of $31.41 per WMT, up 74.7 percent, while medium-grade ore fetched $42.50 per WMT, an increase of 39.2 percent.

In Palawan, operations delivered export revenues of ₱2.1 billion in the first half of 2025, an 8.5 percent increase from ₱1.93 billion in the prior year, despite a 17.1 percent decline in shipment volumes to 0.89 million WMT from last year’s 1.08 million WMT.

The drop in sales volume was mainly due to permitting delays, which limited access to new mining areas, compounded by adverse weather conditions, with the pacing of foreign vessel arrivals contributing minimally.

To stay on track with growth targets, the site optimized ore reserve utilization and enhanced mine planning and operational efficiency through advanced technology integration.

Meanwhile, Surigao operations generated ₱1.19 billion in export revenues, equivalent to a 4.0 percent year-on-year increase from ₱1.14 billion.

While shipment volume declined by 29.5 percent to 0.73 million WMT from the prior year volume of 1.03 million WMT, due to excessive rainfall that disrupted the mine site’s preparatory activities, the site adopted a firm and future-oriented approach.

Strategic stockpiling efforts at the beginning of the year guaranteed proper inventory levels, allowing the mine to meet market demand. With the weather significantly improving from mid-May to June, the site took advantage of the operating window to substantially ramp up shipments during the period, more than doubling sales volume performance compared to April and early May.

“Our first-half performance demonstrates our resilience and ability to deliver value despite external factors,” said FNI President Dante R. Bravo.

He noted that “While unfavorable weather and regulatory constraints affected shipment volumes, we capitalized on market pricing. Strategic mine planning, technology integration, and disciplined cost management enabled us to sustain revenue growth and protect margins.”

Cost of sales dropped by 16.4 percent to ₱1.45 billion from ₱1.74 billion in the same period last year, primarily reflecting lower shipment volumes.

Lower contract hire rates owing to the movement in sales mix towards a greater proportion of low-grade ores also helped reduce cost.

Operating expenses were fairly flat at ₱1.08 billion, with a modest increase of ₱10.6 million or one percent, largely on account of provisions for Input VAT impairment and freight charges not incurred in the previous year.

This was offset by a substantial decline in excise taxes and royalties, following a one-time settlement booked in 2024.

“With the first half of the year behind us, our attention continues to be on maintaining operational improvements, stepping up shipments, and setting FNI up for long-term, sustainable growth,” Bravo said.